Are you confused about your financial advisor’s fees? Do you even know how much you pay? This video discusses fee disclosure changes in the financial advisor industry to help you understand financial advisor fees better.
- The SEC is going to require financial advisors to disclose their fees.
- The Certified Financial Planners Board (CFP) is taking fee disclosure off their search criteria because they are fee neutral.
- Industry associations such as the National Association of Personal Financial Advisors (NAPFA) are against CFP’s removal of fee disclosure.
What to do
If you’re interviewing financial advisors, I’d ask them what services they offer. How much it’s going to costs. And can I have that in writing? If they aren’t straight forward, move on. Find a fee-only Certified Financial Planner at www.NAPFA.org.
If you are confused about financial advisor fees, you’re not alone. Recent changes in the financial advisor industry are making fees transparent, while other changes are making fees less transparent. So if you’re approached by an advisor, ask them what their fees are upfront.
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